New Mexico LLC: No Annual Report Required
New Mexico is one of a very small number of US states that requires no annual report filing for LLCs — and no annual fee. Here's what that means in practice and what New Mexico LLCs still owe.
No Annual Report Required
New Mexico is one of only a handful of US states — including Ohio and Alabama — that does not require LLCs to file an annual report. This means:
- No annual report form to file
- No annual report fee to pay
- No renewal deadline to track
- Your LLC remains in good standing without any recurring state filing
For LLC owners who want minimal administrative burden, New Mexico is one of the most attractive formation states in the US.
While New Mexico charges nothing for annual LLC compliance at the state level: California charges $800/year, Delaware charges $300/year, Florida charges $138.75/year, and Nevada charges $350+/year. The savings over just a few years can be substantial.
What New Mexico LLCs Do Owe
No annual report doesn't mean zero obligations. New Mexico LLCs still have:
- Registered agent requirement: You must maintain a registered agent with a physical New Mexico address at all times. If your registered agent changes, you must update the state, but there is no recurring fee for simply maintaining one.
- Federal tax filing: All the standard federal LLC tax obligations (Schedule C, Form 1065, etc.) still apply — New Mexico's no-report rule only affects state-level compliance.
- New Mexico state income tax: If you have New Mexico-source income, you may owe New Mexico income tax on your personal state return.
- New Mexico gross receipts tax (GRT): If your LLC sells goods or services in New Mexico, you may owe GRT (New Mexico's equivalent of sales tax) at rates that vary by location and item type.
New Mexico State Income Tax
New Mexico has a state income tax with rates from 1.7% to 5.9%. LLC income that passes through to members is reported on members' personal New Mexico tax returns. This applies if you are a New Mexico resident or if your LLC earns income from New Mexico sources.
Despite having income tax, New Mexico's overall LLC cost burden remains extremely low due to the absence of franchise taxes and annual report fees.
Privacy Advantages
New Mexico is one of only a few states that allows truly anonymous LLC formation:
- LLC member names are not required on the Articles of Organization
- Member information is not publicly searchable in state records
- Combined with no annual report (which would otherwise require member updates), this provides strong ongoing privacy
New Mexico's privacy protections rival those of Wyoming, making it another excellent choice for privacy-conscious LLC owners.
Who Should Consider Forming an LLC in New Mexico?
New Mexico is an especially good fit for:
- Entrepreneurs who want minimal ongoing compliance — no annual report, no renewal deadlines to track
- Foreign owners who want low ongoing cost — $0 annual state fees vs $300–$800 in other states
- Privacy-focused businesses — no member names in public records
- Online businesses with no New Mexico customers — may owe no New Mexico income or gross receipts tax
It's less ideal if your business is based in a high-tax state like California where you'll owe that state's taxes regardless of where the LLC is formed.